GEO Investing

By Maj Soueidan, Co-founder GeoInvesting

On June 19, we sent an alert that we add a new company to our GeoBargain list, exactly one week after disclosing our long position in the stock. This decision came about a month after we noted that we were bringing the stock into the premium member funnel and right after an interview with the CEO of the company.  Like another stock in the telematics industry that we are digging into, MiX Telematics Limited American (NYSE:MIXT), this company provides mobile resource management (MRM) hardware and cloud services.

Markets served by this industry include automotive, insurance industries, and other mobile tracking markets worldwide. Some have hailed 2016 as a turning point in the MRM industry because competitive trends and regulation are “mandating” change.

Using a sum of parts valuation (recurring revenue business hardware business), we think the stock’s valuation is about 50% higher than its current price, assuming little growth. On top of that, management has hinted that an acquisition is coming in 2017 which could make our target rather conservative. Long-term investors may ultimately wind up earning multi-bagger returns.

Members have already reaped some decent returns of 19.05%.  Today, the stock was up 14.6% on our article…and again, there is upside int he cards.

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